Re: Scandal in the making: Wheat production numbers exaggerated
intl prices are irrelevant to pak if you assume that wheat producers are deaf, dumb and blind. you off course are welcome to make this assumption but i and other rational people dont assume such things. since pakistani wheat producers are aware that their crop will fetch much higher prices abroad, they will try to do all in their power to get higher prices. one way to get higher price is to start hoarding wheat. to call their bluff, govt is importing wheat and will sell it below cost in order to maintain price and social stability. econ 101 logic would tell you that mkt is the best mechanism to ditermine prices but the political cost for govt is too high if it adapts this strategy.